S.D. Standard ETC (SDSD) Q2 2024 earnings summary

Executive summary

• Q2 2024 net loss was USD 5.7m, mainly from unrealized losses in Dolphin Drilling and Standard Supply, an improvement from USD 14.4m in Q2 2023.

• Asset Portfolio includes 17% stake in Dolphin Drilling and 53% in Standard Supply.

• Portfolio value at quarter end: Asset Portfolio USD 49m, ETC Portfolio USD 82m.

• Dividend income from Standard Supply AS in H1 2024 was USD 26.1m.

• The company maintains a strong financial position with no debt and a focus on medium to long-term capital growth in energy, transport, and commodities.

Financial highlights

• Q2 2024 net loss: USD 5.7m, compared to USD 14.4m in Q2 2023.

• Unrealized loss on Dolphin Drilling shares: USD 10.0m; Standard Supply shares: USD 0.5m.

• Dividend income in H1 2024 was USD 26.5m; interest income was USD 2.3m.

• Gain and interest from ETC Portfolio: USD 4.9m.

• Basic and diluted EPS for Q2 2024: USD -0.01.

Segment performance

• Dolphin Drilling: Three rigs contracted, firm revenue backlog of USD 480m; Blackford Dolphin transitioning from Nigeria to India for new contract.

• Investments in Standard Supply AS and Dolphin Drilling AS had a combined market value of USD 40m as of 30 June 2024.

• Unrealized net loss on these investments was USD 19.4m for H1 2024, after accounting for dividends received.

• Financial assets held for trading had a fair value of USD 44.7m at quarter-end.